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Everything from A-to-Z: There are Consumer Cyclical Stocks for Everyone
The consumer cyclical sector includes a broad range of companies all the way from automotive to travel and leisure. Their stocks’ performance relies on the business cycle and the current economic state. When the economy is strong and consumers have a larger disposable income, spending in these industries increases and the performance reflects in the stock price. On the other hand, when the economy contracts and consumers have less disposable income, spending on entertainment and luxuries shrinks. Remember also that company performance depends on the niche that it fills; smallcap companies in this sector are affected by the same economic conditions and business cycles as largecaps. Regarding investing, many internal and external factors must be considered when selecting the right companies for your portfolio.